If Pam transfers an asset to Fred and the asset is subject to a liability that is assumed by​ Fred, how does​ Fred's

If Pam transfers an asset to Fred and the asset is subject to a liability that is assumed by​ Fred, how does​ Fred's assumption of the liability affect the amount realized by​Pam? How does​ Fred's assumption of the liability affect his basis for the​ property?


PI:5-34
Dexter receives a duplex as a gift from his uncle. The​ uncle's basis for the duplex and land is $170,000. At the time of the​ gift, the land and building have FMV s of $52,000 and $78,000​, respectively. No gift tax is paid by Dexter's uncle at the time of the gift.

Requirements

a.	To determine​ gain, what is Dexter'sDexter's  basis for the​ land?
b.	To determine​ gain, what is Dexter'sDexter's  basis for the​ building?
c.	Will the basis of the land and building be the same as in Parts a and b for purposes of determining a​ loss?

a) (170000*52000) / (52000+78000)
b) (170000*78000) / (52000+78000)
c) No since FMV(52000+78000) is Less Than the donor's basis (170000)
   - therefore Yes if xx Greater Than xx.